Ontario Real Estate Licensing Exam Practice · Question
A buyer makes an offer on a residential property in Guelph with a deposit of $20,000. Upon acceptance, the deposit cheque is provided to the listing brokerage. What is the listing brokerage legally obligated to do with this deposit money?
As per TRESA, 2002 regulations (O. Reg. 567/05, s. 26), all money received by a brokerage in trust for a client must be deposited into a real estate trust accou
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Question: A buyer makes an offer on a residential property in Guelph with a deposit of $20,000. Upon acceptance, the deposit cheque is provided to the listing brokerage. What is the listing brokerage legally obligated to do with this deposit money?
Answer options:
- Hold it in their general operating account until closing.
- Invest it in a high-yield savings account. ✅ Deposit it into a real estate trust account within five business days of receipt.
- Forward it directly to the seller's lawyer.
Correct answer: Deposit it into a real estate trust account within five business days of receipt.
Explanation: As per TRESA, 2002 regulations (O. Reg. 567/05, s. 26), all money received by a brokerage in trust for a client must be deposited into a real estate trust account no later than five business days after receipt.
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